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President Clinton faces a tough battle with Congress after blocking tough penalties for doing business with Cuba for another six months.
Taking a halfway measure on the politically sensitive issue, Clinton in July reimposed a six-month waiver on any litigation brought under Title III of the Helms-Burton Law but allowed the way open for law suits to be filed.
Title III allows for former owners of property in Cuba to sue foreigners who invest in the island.
In a document issued on July 16th, the President stated that the decision was reached because of the "continuing action by our allies to step up efforts to promote democracy in Cuba."
The document referred directly to the significance of the EU's adoption of a Common Position on Cuba in December last year, which specifically links future commercial co-operation with the island to improvements in what it calls 'Human Rights and Democracy'.
But despite the Common Position, Right-wing congressional representatives immediately threatened to move against U.S. President Bill Clinton if he tried to soften any aspects of the Law.
In an open letter to the U.S. president, Senator Jesse Helms, President of the Senate Foreign Relations Committee, and Benjamin Gilman of the House Foreign Relations Committee lashed out at actions taken by the Clinton Administration to satisfy agreements with the European Union, the EU.
In March, the White House struck a deal with the EU promising to do everything possible to clean-up the extraterritorial aspects of Helms-Burton, in exchange for the European Union suspending its legal challenge of the law before the World Trade Organisation.
The EU has charged that the U.S. legislation -- which tightens the economic blockade of Cuba -- is a violation of international law.
The right-wing Congressmen scolded Clinton for his decision to freeze Title III and warned that they are prepared to lead the fight in Congress to take away presidential powers to suspend parts of the controversial legislation.
The open letter addressed to Clinton also strongly criticised the U.S. president for not moving faster on measures designed to punish foreign companies that do business in Cuba. Senator Helms and Representative Gilman also expressed their disgust at the White House for what they called "the deliberate and unilateral decision" not to apply the provision of Helms-Burton which denies entry visas to business executives and their families with properties in Cuba.
The letter threatened to begin a major push in the House and Senate to remove Clinton's prerogative to suspend certain extraterritorial aspects of the law. The open letter concludes by warning the U.S. president that he is acting outside of current legislation, passed by both houses of the Congress and signed into law by Clinton himself.
Meanwhile, as if to underline Helms's fear that EU Cuba trade will grow France and Cuba signed a trade agreement which provided investment guarantees, repatriation of profits, arbitration procedures and guarantees against nationalisations.
In April, the European Union suspended its complaint before the World Trade Organisation over the Law and has until Oct. 15 to revive the complaint. Whether or not the EU revives the action depends on the outcome of negotiations between the US state department and the EU which were reported in August to be bogged down.
Both U.S. and European negotiators said it would be tough to complete the negotiations by the mid-October deadline. A deadlock might spur the EU to reactivate its challenge to Helms-Burton
before the World Trade Organisation, a fledgling group whose authority to set world trade policy could be crippled by the fight between the two economic blocs.
European officials have argued that the lawsuit provision is an attempt by the United States to extend its jurisdiction beyond its borders. Britain, which backs the United States more than any of the allies, is vehemently opposed to U.S. interference in trade with Cuba, as is Canada.